Rates are increasing for commercial entities hauling culinary (drinking) water from the Moab City Public Works yard. Citing increased costs and disruptions, members of the Moab City Council voted 4-1 to more than double the water rate for commercial users to $5.50 per thousand gallons.
“About six months ago, citizens contacted the city about the increase in water-hauling truck traffic on Kane Creek (Blvd.) and 500 West. This prompted the city to examine the activity at the water fill-up station,” Council member Heila Ershadi said.
City manager Donna Metzler said city officials began to monitor the purchase of water from the yard and found “an exponential increase in the amount of water purchased, as well as an increase in the number of trucks coming into the city yard on a regular basis.”
In comparing the water purchased from January to July in 2013 to 2014, Metzler said there has been a 220-percent increase. She also noted that the number of companies with trucks hauling water from the yard has increased over the past year. Currently, there are 15 commercial trucking companies purchasing the city’s water.
“In talking with the public works director, the number of trucks coming into the yard is a huge disruption,” Metzler said.
Moab Mayor Dave Sakrison also said that a lot of the water being purchased by the commercial companies is being used for construction and drilling projects. The water, which is culinary water, is being used for projects like dust suppression.
“Is that really the best use of culinary water?” Sakrison asked.
In response to the situation, Metzler presented several options, including increasing the commercial rate for water from $2.24 per 1,000 gallons to $4.10 per 1,000 gallons, considering weekly or monthly caps on the amount of water that can be purchased, working with San Juan County to encourage haulers for projects located in San Juan County to purchase water locally, and implementing service contracts for commercial haulers.
Metzler also noted that some commercial companies had keys to access the city yard after hours, and that the locks have now been changed on the gates and after-hours access would no longer be permitted.
While the options presented at the meeting were only for discussion purposes, Metzler requested that as part of immediate action to the situation, the council vote on the purposed rate increase of $4.10 per thousand gallons.
Council member Doug McElhaney asked how the rate increase might affect companies operating out of Moab that employ Moab and Grand County residents. He said the companies have created their operations based on the current rate of water.
“If we were running out of water, we would need to do something about, but I would hate to do a knee-jerk reaction that might cost those companies their jobs,” he said.
Metzler said she did not think the response was a “knee-jerk” reaction.
“This rate is so low that increasing it by this amount certainly won’t put anyone out of business,” she said. “It could serve to hopefully cause the water haulers to look for other options and I think that is really what we are trying to encourage. It also could reduce some of the costs we are incurring to provide the service.”
Council member Kirstin Peterson said she did not think the proposed rate of $4.10 would create enough incentive for companies to seek out other options.
“I understand that there are jobs that are associated with this, but that is part of every business – there is a cost of doing business,” she said. “We are probably allowing haulers to charge substantially more and we are giving them wholesale water.”
Metzler agreed that when comparing the rates charged by surrounding areas, such as the town of Green River, whose rate is $6.66, the City of Moab has low rates. She also added that the biggest increase in water purchased by the companies occurs during the summer months, which is also the same time period when the city needs the water.
“It is very difficult to make the decision without having more facts, but I don’t think that we can afford to wait until things are depleted,” Peterson said. “I am definitely of the mind to be more conservative.”
Peterson proposed a rate of $5.50 per thousand gallons.
Council member Kyle Bailey seconded Peterson’s motion for an increase to $5.50 per 1,000 gallons, and the motion was passed with a 4-1 vote by the council. McElhaney voted against the motion.
The rate for government water haulers will remain at rate of $2.24 per 1,000 gallons.
Sakrison has been working with the Bureau of Land Management to find an alternative fill-up station for the trucking companies located southwest of the tailings clean-up project along state Route 279. The alternative location would not be managed by the City of Moab.
“I think this could be a win-win situation for everyone involved,” he said.
“This rate is so low that increasing it by this amount certainly won’t put anyone out of business. It could serve to hopefully cause the water haulers to look for other options and I think that is really what we are trying to encourage. It also could reduce some of the costs we are incurring to provide the service.”
Officials hope rate hike encourages users to explore alternatives
